The cryptocurrency market went red on February 20, while Bitcoin (BTC) revisited the bottom of its current range. In the meantime, some cryptocurrencies still show an overbought status, which could indicate a sell signal.
Bitcoin has been trading in this range since February 14, after breaking the $50,000 psychological resistance. On February 20, BTC made new highs at $52,985, just to immediately retrace to the bottom of the range.
Notably, this movement weakened other cryptocurrencies that were trending upwards but might set a trend reversal.
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Sui Network (SUI) is overbought
In particular, Finbold spotted an overbought JasmyCoin (JASMY) at CoinGlass’s weekly Relative Strength Index (RSI) heatmap.
The JASMY token currently has the highest daily RSI in the market, creating a relevant sell signal at these prices. As of writing, JasmyCoin is trading at $0.0099, up 54.24% in seven days but with a 77.49 overbought weekly RSI.
Moreover, it also shows an overbought status in the daily and 4-hour time frames, with 88.05 and 81.47, respectively. Today’s overall retracement could trigger a massive correction for JASMY after this overextended bull run.
Sell signal for Frontier (FRONT)
Another highly overbought cryptocurrency is Frontier (FRONT). The token has a 79.39 weekly RSI, trading at $0.54 and up 6.98% by press time. This is the highest 7-day Relative Strength Index.
Interestingly, FRONT has a notable divergence between its weekly status and the short-term indicators. Excluding the 71.1 daily RSI, the lower time frames are losing momentum, signaling a trend reversal.
Navigating these trend indicators is crucial for investors looking to buy and sell signals.
Nevertheless, having an overbought RSI does not guarantee a price crash or trend reversals. The cryptocurrency market is highly volatile, and projects usually respond aggressively to news and relevant events. Thus following leading indicators such as Bitcoin, the stock market, or other financial products.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
